Scottsdale Dodges Bank Fraudster's Past Defense Bills

Law360, New York (November 13, 2012, 4:07 PM EST) -- A New York state appeals court ruled Tuesday that Scottsdale Insurance Co. only has to pay the current defense costs of GDC Acquisitions LLC's former CEO, who was convicted of a $21 million bank fraud, but not his past bills.

A five-judge First Judicial Department panel for the Appellate Division of New York Supreme Court upheld a state judge's preliminary injunction decision that ordered the insurer to pay defense costs going forward for Courtney Dupree, the ex-CEO of GDC, which owns lighting maintenance and furniture distribution...